Hedging Assignment | Homework For You
May 21st, 2020
3. Iberia would like to hedge its $100 million payable to Exxon, which is due in 120 days. Spot Rate = 1€/$ Forward rate (120 days) = 0.95€/$ Euro interest rate annualized = 7% Dollar interest rate annualized = 5%.
Which hedging alternative would you recommend?
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